Recent Price Movement and Market Context
On the day the new low was recorded, BASF India’s stock fell by 1.07%, underperforming the Specialty Chemicals sector by 0.57%. The stock has been on a losing streak for four consecutive sessions, cumulatively declining by 2.13% over this period. Trading activity has been confined within a narrow range of Rs.25.25, indicating limited volatility but persistent selling pressure.
Technical indicators show the stock trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained bearish trend. This contrasts with the broader Sensex index, which, despite a negative close of 0.41% at 81,911.52 points, remains above its 200-day moving average, though below its 50-day average.
Long-Term Performance and Relative Comparison
Over the past year, BASF India’s stock has delivered a negative return of 19.13%, significantly lagging the Sensex’s positive 9.77% gain during the same period. The stock’s 52-week high was Rs.5418.20, highlighting the extent of the decline from its peak. Furthermore, BASF India has underperformed the BSE500 index across multiple time frames — three years, one year, and three months — underscoring persistent challenges in maintaining market confidence.
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Financial Metrics Reflecting Current Concerns
BASF India’s recent financial results have shown limited growth momentum. The company’s operating profit has expanded at an annualised rate of just 8.26% over the last five years, a pace considered modest within the Specialty Chemicals sector. The latest nine-month period saw a decline in profit after tax (PAT) by 21.92%, with PAT standing at Rs.345.81 crores.
Return on Capital Employed (ROCE) for the half-year period is at a low 13.62%, indicating constrained efficiency in generating returns from capital investments. Cash and cash equivalents have also diminished to Rs.164.99 crores, the lowest level recorded in recent periods, which may impact liquidity considerations.
Balance Sheet and Valuation Insights
On a positive note, BASF India maintains a low average debt-to-equity ratio of zero, reflecting a debt-free capital structure that reduces financial risk. The company’s return on equity (ROE) stands at 9.5%, which, combined with a price-to-book value of 4, suggests a valuation that is attractive relative to its historical averages and peer group.
Despite the subdued profit growth and share price decline, the stock is trading at a discount compared to the average historical valuations of its peers in the Specialty Chemicals sector. However, the profit contraction of 36.5% over the past year highlights the challenges faced in maintaining earnings stability.
Shareholding and Market Position
The majority shareholding in BASF India remains with the promoters, providing a stable ownership structure. The company operates within the Specialty Chemicals industry, a sector that has experienced mixed performance amid broader market fluctuations and sector-specific dynamics.
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Summary of Rating and Market Sentiment
MarketsMOJO currently assigns BASF India a Mojo Score of 47.0, categorising the stock with a Sell grade as of 23 Jul 2025, a downgrade from its previous Hold rating. The market capitalisation grade is 3, reflecting a mid-tier valuation status. The downgrade reflects the company’s subdued growth prospects and recent financial performance trends.
In the context of the broader market, the Sensex’s mixed technical signals and the stock’s relative underperformance highlight the challenges BASF India faces in regaining investor confidence and market momentum.
Conclusion
BASF India Ltd’s stock reaching a new 52-week low of Rs.3494.75 underscores a period of subdued performance and market caution. The combination of modest profit growth, declining earnings, and technical weakness has contributed to the current valuation and rating status. While the company benefits from a strong balance sheet and attractive valuation metrics relative to peers, the recent financial results and price action reflect ongoing pressures within the Specialty Chemicals sector and the broader market environment.
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